# A Level Economics Quiz 2017 Part 2

#### Quiz Description

There are so many definitions that are used to describe economics. We can define it as the study of the nature and causes of nations’ wealth or simply as the study of wealth.

When preparing for an exam, students who just do a bit of reading will never be properly prepared. The most important aspect of revision is to make it active. Force yourself to keep thinking and understanding what you have been studying. Start off by knowing the questions and likely questions. In order to help you keep your mind active and thinking, we have prepared a quiz of 15 questions for you. These questions are to keep your mind thinking, as the questions are confusing and tricky most times. This exercise will help improve your reasoning ability.

Based on the 2017 CGCE session, each of these 15 questions has four possible answers, which among only one is correct. Take your time to understand what is asked of you in a question.

After this set of questions, you can then move on to the next set of questions.

Good luck!!!

This Question is based on the table, which shows the sale and total of a firm.

In which market is the firm operating?

Correct
• Monopoly market
• Monopolistically competitive market
• Oligopolistic market
• Perfect market

A profit-maximizing firm has an output of 10 units per period. The total fixed costs are 1,000 FCFA and total variable costs are 2,000FCFA. What is the minimum price per unit it should accept in the short run?

Correct
• 200 FCFA
• 50 FCFA
• 100 FCFA
• 300 FCFA

A firm should close down in a long term if its price is not able to cover

Correct
• Fived cost
• Total cost
• Variable cost
• Average cost

At a give time, a monopolist can control

Correct
• Output only
• Price only
• Price or output but not both
• Both price and output

This question is based on figure 3, showing the cost and revenue position of a firm

The total cost of the firm at the equilibrium output is

Correct
• 0P1EQ1
• 0P3CQ1
• 0P4BQ1
• 0P2DQ2

This question 21 is based on the table, which shows price and output as workers are recruits by a firm

If the firm employs 5 workers, then the equilibrium wage would be

Correct
• 100,000FCFA
• 10,000FCFA
• 60,000FCFA
• 50,000FCFA

Interest and profit are different in that

Correct
• Interest is a reward to share while profit is a reward to loan capital
• Interest may be negative while profit may not
• Interest is always positive while profit fluctuates
• Interest fluctuates while is positive

The relationship between the prices of securities and the market rate of interest is

Correct
• direct
• proportional
• disproportionate
• inverse

national income plus transfer payments minus undistributed profits is

Correct
• personal disposable
• net national product
• personal income
• net personal income

suppose the nominal GDP of Cameroon increase from 6, 000 billion FCFA in 1995 to 6.250 billion FCFA in 1966. If the base year was 1995 and the GDP deflator for 1996 was 125, what was the real GDP in 1996

Correct
• 7,812.5 billion FCFA
• 6,125 billion FCFA
• 4,800 billion FCFA
• 5,000 billion FCFA

Question is based on the
national income data below (figures are in million FCFA)

GNP at market price 2,000

Net property income from abroad -20

Indirect taxes 80

Subsidies 20

Depreciation 800

The value of national income is

Correct
• 1,140 million FCFA
• 1,180 million FCFA
• 1,260 million FCFA
• 1,940 million FCFA

The formula;

consumption +investment – important + Government spending + Exports,
represents

Correct
• Total domestic expenditure
• Total final expenditure
• Net domestic expenditure
• Gross domestic expenditure

The paradox of thrift is based on the fact that, the more people save, the more

Correct
• Income rises, causing savings to fall
• Income falls, causing savings to fall
• Income rises causing savings to rise
• Income falls, causing savings to rise

A closed economy has an MPC of 0.8. the equilibrium level of national income is 4,000 million FCFA and the full employment income is 5,000 million FCFA. Assuming private investment is unaffected, how much must government final expenditure be to increase for full employment to be attained

Correct
• 200 million FCFA
• 640 million FCFA
• 800 million FCFA
• 1,000 million FCFA

The basic assumption underlying the accelerator principle is that

Correct
• Investment depends on the rate of change of output
• Investment depends on the level of savings
• Investment depends on the rate of change of interest rates
• Investment depends on the level of business expectations